On December 31, 2018, Demetrius and Garnett agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows:

Requirements
1. Journalize the contributions of Demetrius and Garnett to the partnership.
2. Prepare the partnership balance sheet at December 31, 2018?

Transcribed Image Text:

Demetrius's Business Garnett's Business Current Current Book Value Book Value Market Value Market Value Assets $ 9,000 $ 9,000 $ 3,000 $ 3,000 Cash Accounts Receivable 23,000 21,000 16,000 14,000 Merchandise Inventory 40,000 43,000 49,000 40,000 54,000 Plant Assets, Net 126,000 108,000 58,000 $ 181,000 $ 113,000 $ 207,000 $ 115,000 Total Assets Liabilities and Owner's Equity $ 23,000 $ 23,000 $ 12,000 $ 12,000 Accounts Payable Other Accrued Payables 13,000 13,000 53,000 Notes Payable 53,000 Demetrius, Capital 118,000 Garnett, Capital 101,000 ? $ 207,000 $ 181,000 $ 113,000 Total Liabilities and Owner's Equity $ 115,000